Can anyone tell me why some people buy reno and sell for a profit and pay tax.
But some are saying buy, reno and hold? I mean if you want cashflow can you do it through the Trust as a Business of buying, renovating and selling. It is a quick way to build up cash if you want a new job.
Why buy reno and hold? how do you use that equity for your lifestyle costs?
some like to sell, others like to hold.
If you sell there are various fees – realestate agent’s commission, CGT, legals, loan discharge fees etc. You will only replace it with another property, so you will be paying stamp duty and more fees again.
If you never sell, you can keep obtaining the captial gains too.
Terryw
Discover Home Loans
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Those that buy and sell quickly need a fairly liquid market I am not so sure they would do so well at the moment now that prices have settled somewhat.
Wayne Skewes
Mortgage Broker
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http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!Reno and hold is the same strategy as buy and hold. If you can create a cashflow positive property by renovating, you do not need to sell.
The idea of cashflow positive properties is not to need the equity to fund your lifestyle costs, rather use the profits. As Steve said if you have 100 houses that make $20 a week, you have $100,000/year. That’s what financial independence is all about.
In other words if you find a golden goose, it is often better to get an egg a day rather than sell the goose.
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